BRO-2-01/4-01 CO:R:C:E 225110 TLS
District Director
U.S. Customs Service
111 West Huron Street
Buffalo, New York 14202
RE: Internal advice request concerning the intended purpose of CF
4811 and CF 5955a; 19 U.S.C. 1641; 19 CFR 172.1(a).
Dear Sir:
This office has received the above-referenced request for
internal advice as provided for under Customs regulations. We
have considered the request and have made the following decision.
FACTS:
A broker contends that notices of liquidated damages sent on
CF 5955a must be sent directly to it by virtue of the broker
having a CF 4811 on file with Customs. The CF 4811 is used for
notices of liquidation, refunds, and bills. Customs routinely
uses the CF 4811 to notify the broker of these matters. The CF
5955a is used to notify the importer of record and the surety of
liquidated damages.
ISSUE:
Whether a broker having a CF 4811 on file with Customs
requires Customs officials to notify the broker of liquidated
damages as done under CF 5955a.
LAW AND ANALYSIS:
Part 24.36 of the Customs Regulations provides for the
following:
(a) When it is found on liquidation or reliquidation of
an entry that a refund of excessive duties or taxes, or
both, is due, a refund shall be prepared in the name of
the person to whom the refund is due, as determined by
paragraphs (b) and (c) of this section. If the
authority to mail checks to someone other than the
payee, Customs Form 4811, is on file, the address of
the payee shall be shown as in care of the address of
the authorized persons....
(b) Refunds of excessive duties or taxes shall be
certified for payment to the importer of record unless
a transferee of the right to withdraw merchandise from
the bonded warehouse entitled to receive the refund
under section 557(b), Tariff Act of 1930, as amended,
or an owner's declaration has been filed in accordance
with section 485(d), Tariff Act of 1930, or a surety
submits evidence of payment to Customs,... (Emphasis
added.)
It is clear from the language of Part 24.36 that persons other
than the importer of record may receive notice of liquidation,
refund, or bill by virtue of having a CF 4811 on file with
Customs indicating authorization to receive such. We note that
no other use for the CF 4811 is apparent from the plain reading
of 19 CFR 24.36, particularly notifying any party of liquidated
damages. In fact, the CF 4811 itself lists only the following
uses for the form: 1) Bills, Refunds and Notices of Liquidation;
2) Checks for Refunds or Drawback only; 3) Bills only; 4) Bills
and Notices; 5) Bills and Checks; 6) Notices of Liquidation only;
and Checks and Notices. The refunds referred to in Part 24.36
are for "excessive duties or taxes, or both,"; nothing in the
language of the regulation suggests that Customs should read it
to include refunds other than those specifically noted here.
Furthermore, the CF 4811 itself is specific about what it is to
be used for and no other use is implied in its format. The only
other mention of CF 4811 in the regulations is under 19 CFR
174.13(c), which states that a refund request may opt to append
such a request to the protest, in effect superseding a request
made on CF 4811. Clearly, liquidated damages are not at issue in
any of these instances.
Part 172.1(a) provides for the following:
(a) Notice of liquidated damages incurred. When there
is a failure to meet the conditions of any bond posted
with Customs, the principal shall be notified in
writing of any liability for liquidated damages
incurred by him and a demand shall be made for payment.
The sureties on such bond shall also be advised in
writing, at the same time as the principal, of the
liability for liquidated damages incurred by the
principal. (Emphasis added.)
It is also clear from the language cited here that the principal
and the surety are the only parties who shall be notified
according to the regulation. The broker is not mentioned at all.
The principal and surety are specifically mentioned because they
are the parties that stand to incur liability for failure to meet
the conditions of a Customs bond. The broker does not stand to
incur such liability in any instance; thus, we find no reason to
require that notification be sent to the broker.
A broker has suggested a connection between the CF 4811
authorizing persons other than the importer of record to receive
notices of liquidation, refunds, or bills, and the CF 5955a,
which of course only is sent only to the principal under bond and
the surety. The broker has not explained how these two separate
documents are connected. We find no connection between the two,
except that they are both Customs forms and are used to notify
parties to Customs transactions of actions taken by Customs
officials. No link between the two forms has been established,
other than the broker's unsupported assertion that the
requirements affecting the issuance of CF 4811 somehow affect the
issuance of CF 5955a. Therefore, none should be inferred from
the reading of 19 CFR 24.36, 19 CFR 174.13, or 19 CFR 172.1.
HOLDING:
Customs is not required to notify (pursuant to 19 CFR
172.1(a)) a broker of liquidated damages incurred because of a
failure of the principal under Customs bond to meet the
conditions of such bond. The CF 4811 is not intended to be used
to notify the broker or any other party of liquidated damages
incurred by failure to meet the conditions of a Customs bond.
The CF 4811 is only to be used to notify authorized persons of
liquidation, refunds of duties or taxes, or bills.
For your information, Manual Supplement 2112-04 is still
effective concerning CF 28 and CF 29.
This decision should be mailed by your office to the
internal advice requester no later than 60 days from the date of
this letter. On that date the Office of Regulations and Rulings
will take steps to make the decision available to Customs
personnel via the Customs Rulings Module in ACS and to the public
via the Diskette Subscription Service, Lexis, Freedom of
Information Act, and other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division